Monday, August 8, 2005

Urban Homebuilding Boom Spreading South

Steve Brown / The Dallas Morning News

Uptown, downtown, all around the town – Dallas' in-town homebuilding boom isn't letting up.

But until recently, many buyers hunting for a high-rise condo or townhouse hadn't thought about Oak Cliff.

Well, think again.

A handful of developments south of the river are bringing the latest in urban housing to historic Oak Cliff neighborhoods. And more are on the way.

Kessler Woods homes have been selling. "I had no idea it would go this fast," said builder Matt Holley.

"What's happening in Uptown is phenomenal, but Oak Cliff has an incredible future, too," said builder Matt Holley, who's building a 30-home contemporary housing community near Stevens Park Golf Course. "Oak Cliff is a dynamic market right now."

Mr. Holley should know. His Kessler Woods project on North Oak Cliff Boulevard is more than half sold, much of it by word of mouth.

"I had no idea it would go this fast," said Mr. Holley, whose mid-century modern houses are fetching between $495,000 and $2 million.

So far, he's sold more than 20 of them.

"As soon as I start building a house, someone buys it," said Mr. Holley, who began purchasing the land for his project about three years ago. The site "had sat vacant for years, and I thought it would be a good investment."

"I had no idea there was so much pent-up demand for this type of housing."

'Big difference'

Buyers are coming from all over the city, said sales agent Keith Cox of David Griffin Realtors.

"At Kessler Woods, only about 20 percent are from the neighborhood – the rest are from outside," said Mr. Cox. "That still means getting people to think beyond the Trinity River, and we have a little ways to go.

"But compared to three years ago, we are seeing a big difference."

It's hard to ignore one of the newest developments in Oak Cliff – the condominium conversion of the landmark Cliff Towers at Zang and Colorado boulevards.

Built in the 1920s as a residential hotel, the 12-story building overlooks Lake Cliff Park and downtown Dallas.

Evergreen Realty Advisors is turning the building into 60 loft-style condos priced from $180,000 to $570,000.

The units at the renamed Lake Cliff Tower will be finished by late spring or early summer.

"We want to change the gateway for Oak Cliff for the better," said developer Steve Everbach. "We thought it was a tremendous opportunity."

The developers are also planning a 35,000-square-foot retail center on land they own across the street.

"We think this area is a tremendous investment opportunity," Mr. Everbach said.

Homebuyers must agree.

"We are 65 percent sold with firm contracts – nonrefundable money," said Mr. Cox, whose firm is selling the high-rise.

New to the area

Indeed, the Oak Cliff market has gotten hot enough that some Uptown builders are jumping the river.

Perry Homes – which has built projects just north of downtown and in Oak Lawn – is about to begin a development on Bishop Avenue near Methodist Hospital.

"I would expect construction to start this fall with completion as early as January or February," said Perry Homes' Jim Salyers.

Seven two-story, duplex-style homes will be about 1,800 square feet each and start at $270,000.

"We are hearing that people are very open to new product in Oak Cliff," said Mr. Salyers, who says Perry Homes is looking at other sites in the area.

Developer Monte Anderson has begun work on a 35-unit townhouse project on Fort Worth Avenue near Sylvan Avenue. The Villas at Dilbeck Court are part of a larger development that includes restoration of the historic Belmont Hotel next door.

About nine townhouses are presold, Mr. Anderson said, and there will also be duplexes and patio homes in the project.

"We have tried to keep our prices down," he said. "We are going to start at about $165,000 or $175,000 for a 900-square-foot unit.

"I wanted it be affordable so that everybody I know would be able to live there."

He's planning more condo and townhouse projects. "I have another three our four tracts under contract on Fort Worth Avenue," Mr. Anderson said.

More townhouses

David Griffin Realtors is marketing a townhouse project just getting under way at the foot of the Houston Street viaduct just south of downtown.

Trinity Townhomes will have 24 two-bedroom townhouses priced from $299,000 to $369,000. Many of the three-story homes will have balconies with views of the nearby skyline.

Developer Blane Ladymon – who also builds in Oak Lawn and East Dallas – has been working on the project for more than a year.

"We searched for land that was close to downtown that was affordable – and that is almost impossible," said Mr. Ladymon. "We found this property that had great views."

But convincing financial backers wasn't easy.

"We had problems with bankers, and several we do business with wouldn't touch the project because they don't believe in the neighborhood," Mr. Ladymon said. "But others have seen the opportunity here and know we are not crazy."

Now, he said, "we've been approached to sell our land to larger and bigger developers."

Original article appears in The Dallas Morning News.